CosmicTaco

Hyundai Motor India's Shares Drop 7% on Market Debut

CosmicTaco · 2024-10-23T09:30:52.113868+05:30

- Hyundai Motor India's shares fell 7.2% on debut, closing at 1,819.60 rupees, under the IPO price of 1,960 rupees. - The company's valuation fell short of the targeted $19 billion, settling at under $18 billion. - Despite the IPO being oversubscribed, retail investors showed little interest due to concerns about high share prices and auto industry slowdown. - Analysts attribute the weak debut to high valuation and near-term weakness in car sales. - Hyundai plans to use the proceeds from the sale of a 17.5% stake in the Indian unit for research and new product launches. Source: [Reuters](https://www.reuters.com/business/autos-transportation/hyundai-indias-shares-fall-13-debut-trade-after-record-33-bln-ipo-2024-10-22/)

Hyundai Motor India's shares fell 7.2% on debut, closing at 1,819.60 rupees, under the IPO price of 1,960 rupees.
The company's valuation fell short of the targeted $19 billion, settling at under $18 billion.
Despite the IPO being oversubscribed, retail investors showed little interest due to concerns about high share prices and auto industry slowdown.
Analysts attribute the weak debut to high valuation and near-term weakness in car sales.
Hyundai plans to use the proceeds from the sale of a 17.5% stake in the Indian unit for research and new product launches.

Source: Reuters